Referenced Symbols

CHICAGO (CBS.MW) - With gift cards in tote, consumers shopped for cold-weather gear in droves last month to ring up the best monthly same-store sales performance in six months.

Preliminary results show a 5.8 percent jump in January sales over last year, according to the International Council of Shopping Centers' index. Discounters led the way, but there were robust results from department stores, apparel and specialty retailers as well.

"Finally, we have a picture that's good across the board," said ICSC's economist Michael Niemira. January's results were the best since September's 5.9 percent gain.

In a shift from blaming the weather to embracing it, most retailers noted that the burst of bitter cold - even record-breaking -- temperatures and snow in many parts of the country helped sales. But clearly, analysts said, the usually slow January sales picked up as consumers redeemed holiday gift cards.

And it helped too that retailers were tight on inventory compared to other post-holiday months when they've feverishly slashed prices to rock-bottom levels to clear shelves and racks for spring gear.

"January continues to gain as a percentage of total annual sales, and this January shows some of the best numbers we've seen yet," said Bernard Sands analyst Richard Hastings. "January is no longer the throw-away, markdown, clear-'em-out month that it was a generation ago."

Wal-Mart
WMT,
-0.45%
set the tone early by reporting a surprising 5.7 percent jump in sales at stores open longer than a year - a key industry benchmark known as comparable-store sales. The company has consistently kept its January forecast in the 3 percent to 5 percent range. Analysts reporting to Thomson First Call on average expected Wal-Mart's sales to rise 4.1 percent.

"Sales continued to build as we moved through the month," the company said. "Cold weather positively impacted our apparel business."

Sales at the namesake stores climbed 5.3 percent. Sam's Club produced a 7.9 percent gain.

In fact, it was the wholesale club segment that did best, clocking a 10.7 percent jump. Costco
COST,
+0.41%
blew by estimates with same-store sales higher by 13 percent rather than the 8.6 percent at First Call, thanks partly to the strikes at grocery stores in Southern California. The entire state accounts for about one-third of Costco's total sales.

BJ's Wholesale
BJ,
+1.66%
pulled in such strong sales that it raised fourth-quarter profit projections. Including a 1 percent lift from gasoline sale, same-store sales jumped 8.8 percent - notably higher than the 5.2 percent expectation at First Call. BJ's ascribed much of the fourth-week boost to the Super Bowl, noting that both teams were in BJ's market.

On the apparel and specialty-retail front, sales of heavy sweaters, coats and winter-weather accessories drove sales.

Limited
LTD,
-6.56%
said same-store sales vaulted 23 percent as the company reworked its sales strategy. The results were well ahead of the optimistic 19.9 percent expectation by First Call.

Even Abercrombie & Fitch
ANF,
+2.21%
landed in positive territory -- up 2 percent - after many months of declining sales and upped its quarterly forecast. Wall Street expected the teen retailer to post a decline of 8 percent.

The company now expects its earnings to surpass an earlier forecast range of 90 cents a share to 93 cents a share. First Call analysts are expecting 92 cents a share, on average.

On a morning conference call, Chief Executive Seth Johnson noted that same-store sales in the post-Christmas clearance period were again better than during the holidays. "In addition to this change in customer-buying patterns, January also benefited from colder than normal weather," he added.

By far the most stunning results came out of the long-beleaguered department-store group, which delivered a 4.8 percent gain compared to last year's drop of 1 percent. What's more, it was the best showing since April 1998, with much of attributed to gift cards.

Sears Roebuck
S,
-3.84%
blew out estimates of a drop of 0.4 percent to an increase of 4.6 percent.

More On MarketWatch

About the Author

Jennifer Waters

Jennifer Waters covers everything that impacts consumers for MarketWatch and writes the Consumer Confidential column. She is an award-winning reporter who has covered a wide variety of beats during her more than 10 years with MarketWatch. Waters is a regular contributor to local and national TV and radio stations, including Fox News and Fox Business News, as well as the Wall Street Journal.

Company

Dow Jones Network

Intraday Data provided by FACTSET and subject to terms of use.
Historical and current end-of-day data provided by FACTSET.
All quotes are in local exchange time.
Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only.
Intraday data delayed at least 15 minutes or per exchange requirements.